How has COVID-19 affected you as a landlord?

Discussion in 'Property Management' started by Simon Hampel, 17th Mar, 2020.

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  1. Hetty

    Hetty Well-Known Member

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    @giraffez I’ve said I don’t want a new lease, the PM even said we could shorten it so they’re not locked in. Last thing I want is it vacant in the middle of all this! Seemed like such a weird thing to say. They asked for a huge reduction and I said they could, but only if they pay it back. If they are happy to accept a smaller reduction I’m letting them off and not making them pay it back.
     
  2. Mel Morgan

    Mel Morgan Sydney Property Manager Business Member

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    I've been flat out trying to work out solutions for everyone on a case by case basis.

    To clarify my LL insurance comment - as Paul has mentioned, the policy wont cover any reduction or rent waiver that's voluntarily agreed with the tenant.

    Its been frustrating how slow the govt have been to release something official and there's been way too much speculation, but understand its a complex issue.

    Solutions I've implemented are:
    - rent 'pauses' where we work out what the tenants can pay now, then wait for the Jobseeker payments to come through and repay the shortfall
    - rent reductions for set periods - esp when the tenant is at the end of their fixed term, taking into account vacancy and let fees
    - allowing the tenant to increase the occupancy (and take on a new housemate)
    - signing a new lease where there is a 6mth reduction and a 6mth future increase
     
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  3. jasonr

    jasonr Member

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    Really bad timing for us. Our tenants advised us 3 weeks ago they were leaving, they hand over the keys this weekend. Property (Everton Park Brisbane) has been online but we've not been able show anyone through - first the tenants wouldn't allow it and now there's a ban on open inspections. Our PM has been largely silent on it all so far which is disappointing but they're probably trying to work out how to respond as well.

    Not sure where to from here. Dropping the price is a certainty, maybe offered with a 6 month lease just to get someone in. I'm expecting it to be vacant for a while though.
     
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  4. wylie

    wylie Moderator Staff Member

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    Perhaps contact one of the agents on here who might be more proactive than your agent who is "largely silent".

    I'm sure agents must be absolutely under the pump, but there's still no excuse to be completely silent. They could be having it for lease with photos and a video walk through.
     
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  5. Michael Mitchell

    Michael Mitchell Well-Known Member

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    I've just leased one in Kedron, one in North Lakes and one in Nundah - there's still plenty of tenants looking. Inspections by appointment only, although no open homes this simply means bring them through one at a time 15mins apart so you can still make it work and with the co-operation of the tenants (much easier to work with when vacant though).
     
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  6. Hetty

    Hetty Well-Known Member

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    Yep I agree, sounds like you need a new PM. I had a bad one when I bought in the south of Brisbane, just let our property sit there for four weeks without even advertising (we were hassling, there were always excuses). I ended up going elsewhere and the person who managed the business apologised to me and said she fired that property manager (which wasn’t my aim), it was just such a waste of money. Got a new PM and it was advertised the next day and we had tenant living there a week or two later.
     
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  7. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    I've been in touch with one of my PMs quite a bit this week. Here's what they're doing.

    When the tenant lets them know they're vacating, they'll do a video walk through and publish this with the rest of their normal advertising.

    After the tenant vacates, they'll ensure the property is clean and show prospective tenants through on an individual basis by appointment.
     
  8. 2FAST4U

    2FAST4U Well-Known Member

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    I haven't received any rent this week from my tenants. They all work in construction so I doubt they got laid off. If I don't have the funds in the bank by Monday I'll be giving them a call to see what's going on...
     
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  9. Property Baron

    Property Baron Well-Known Member

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    What if a couple who both worked before Coronavirus and then one loses there job. Do they qualify for rental assistance? A couple both working could be paying a much higher rent.
     
  10. marmot

    marmot Well-Known Member

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    Pretty sure if one earns more than 48k they get nothing.
    If both lose their jobs then they can both claim regardless of assets test.But you have to be eligible.
    There are an estimated 600,000 kiwis in Australia and so far they ineligible as well as many types of visa holders and new arrivals that have to wait a few years ????.
     
  11. Omnidragon

    Omnidragon Well-Known Member

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    You’re lucky. Imagine they couldn’t pay rent and squatted. At least now you can vet your tenants
     
  12. marmot

    marmot Well-Known Member

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    With all the Airbnb apartments and houses flooding back onto the market , coupled with zero immigration for at least a year , I wonder how thats going to umpact rents and vacancy rates over the next 12 months.
    Many older Australians are also desperately trying to escape the heavily populated large cities to semi rural and country locations.
    Many of these country locations by the coast also have high levels of short term rentals that have simply seen their bookings all disappear.
     
    Last edited: 28th Mar, 2020
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  13. Realist35

    Realist35 Well-Known Member

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    Morning PC ladies and gents :)

    Building and landlord insurance for our Brisbane property expired a couple of months ago. I've called Terry Scheer yesterday and was able to renew only the building, but not the landlord insurance.

    Would anyone advise which insurers still offer landlord policies?

    Further, would anyone know what happens if tenants default and can't pay anymore? Are there any new government policies (in light of new coronavirus emergency) in place that would cover for those situations?

    Thanks a lot :)
     
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  14. Propin

    Propin Well-Known Member

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    I forgot my rule - not to open emails on a weekend. So I just opened an email from Qld PM from Thursday stating tenants have advised they may not be able to keep paying $485 per week rent due to employment due to Covid. They have requested we think about offering free rent, reduced rent, asking our bank to defer payments for 6 month, make sure landlord insurance up-to-date, be on standby for government announcements concerning this topic. I just checked my LL insurance and realised I couldn't afford it late November and cancelled it for basic cover. I had cover for the past 12 years and never used it and the property was gong to be listed for sale in July/Aug so it seemed like a low risk to cancel. So the selling plan is off the cards now and I'm a bit shocked I ever thought it was a good idea to cancel LL insurance. On application 3 years ago there was one employed as a Truck driver and one on Centrelink earning $300/fn with 2 kids. Since then they've had another 2.

    Property 2 - Long-term tenant hasn't Been able to get Aus Citizenship and is employed by a German Company. I'm not sure how that will pan out but the state office is run from my rental during WA downturn.

    Property 3 - Fantastic tenants have been owner building for a few years with heaps of delays. Finally got project off the ground and due to move in 3 months if no further delays.

    My buffer died saving my dogs life. $10,000 in emergency vet bills and hubby being on A/L, Long service leave, Accumulated RDO leave etc (due to lack of work) for 6 months of 2019.

    Feeling a bit deflated!

    Only upsides are my son owes me $7500 Which he should be able to pay in July. Apprentices were the first to get looked after weren't they? So I'm hoping he doesn't become financially dependant on us again.

    Tax return around Aug may provide around $5000.

    I don't like the sound of the banks deferred payment for 6 months - doesn't sound like a good plan to me.

    If worst came to worst maybe I should consider cashing in super? I only have $25,000 so it's never going to go far anyway. Hopefully I would qualify as I don't work, but we don't get any Family Tax Part A or B due to my husbands income. (for now)

    My current investment interest rates variable are 3.4% . What do you think would be better option if you had to choose between deferred payments or super pullout?

    My first port of call is to update PM on my situation. (I had advised my PM of plans a year ago but company sold PM business and current PM's had lot's of hiccups with handover)

    My doggy beside me right now! He was worth saving!
     

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    Last edited: 28th Mar, 2020
  15. Silverson

    Silverson Well-Known Member

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    If a landlord is advised to have a buffer for such an event, would it be silly to assume a tenant also should?
     
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  16. The Y-man

    The Y-man Moderator Staff Member

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    Sorry to hear - what's the monthly shortfall if the rent drops on IP1?

    The Y-man
     
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  17. Propin

    Propin Well-Known Member

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    I thought I had it wrong and they acquired extra kids. 6 kids last count and i’m spending around $4000/yr on repairs/maintenance. It was about $1000 negative before they moved in.
     

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  18. Player

    Player Well-Known Member

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    Did she point you to a relevant section in your policy product disclosure document that verifies what she said?
     
  19. Jamesaurus

    Jamesaurus Well-Known Member

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    I found this list of solutions very helpful.. thankyou ..

    My current contingency plan progression (no requests from tennants yet):

    1)discuss payment plan, what can they afford now, and deferral of payment for 6months time- how much the new payments will be then. (Note I still have the bond as a buffer, say if 2.5k and have 500 month off now would have 5 months worth there)
    2) look to change Loan from p&i to IO
    3) contact bank/broker and look for mortgage freeze for 6months
    4) if my ACT tenants vacate- move into the house myself (i'm only on a month-to-month-lease) and then look to find 2 roommates for the other 3 rooms
     
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  20. Shazz@

    Shazz@ Well-Known Member

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    Hindsight is a beautiful thing... moving forward, would you have a buffer of more than $10000?
     
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